ABSTRACT

This study aims at determining the impact of Problems and prospect of personal income tax collection on internal generation of revenue in Edo State. The paper testes the hypothesis that there is significant impact of poor data management, payee sensitization, provision of personal income tax laws on tax collection, problems of personal income tax administration, and mismanagement of personal income tax funds collected on personal income tax collection in Edo State. The study applied census survey for (51) staffs of Federal Inland Revenue Service in Benin City, Edo State Nigeria. The cluster sampling technique was adopted in this study. The research instrument used for this study is the questionnaire. The response to each of the question in Section B was based on the five-point likert scale and denoted as 1-Strongly Agree; 2-Agree; 3-Neutral; 4-Disagree; 5-Strongly Disagree. The data collected were analysed using both descriptive and inferential statistics. In addition, the hypotheses of the research have been tested using SPSS 2.0 version for data analysis. The results reveale a significant positive impact of Payee poor data management, lack of Payee sensitization, inefficiency of the personal income tax law on payment and collection of tax, ineffectiveness of personal income tax administration, and mismanagement of personal income tax funds. In conclusion, this study suggests and advice Edo State government to effectively improve on Payee data management, continuous sensitization of all potential Payee, effectively resolve problems associated with personal income tax administration, and monitor the effective use of personal income tax funds collected.